The housing authority of the state MahaRERA has issued a show cause notice to 584 of the 746 projects registered with the authority in the month of the January.
The reason being that these 584 realty projects registered with MahaRERA have not uploaded quarterly progress reports (QPR) for their projects.
According to a MahaRERA statement, these 584 projects, are among the 746 that were registered in January in Maharashtra. The cost of these 746 projects is ₹22,449 crore and comprises of 50,288 apartments, and of these 546 realty projects have not uploaded their QPRs, which they were suppose to update by April 20.
MahaRERA has given a period of 15 days to these developers to respond and if they don’t then action will be taken by the authority.
Once project registrations are put under suspension, the developer cannot market, advertise, or sell apartments in the project until the suspension order is revoked.
As per Section 4 (2) (D) of the Real Estate (Regulation and Development) Act, 2016, promoters are required to open a separate account in a scheduled bank exclusively for the project. RERA stipulates, that 70 percent of the amounts received from homebuyer for the real estate project is to be deposited in a separate RERA-designated bank account to cover the cost of land and construction for the project.
QPRs allow homebuyers to track the actual status of construction and progress of projects every quarter, which enables them to decide whether or not to invest in the project.
Under the act, developers are required to submit project status, the financial position of the project, booking numbers, annual reports, quarterly reports, and other details.
“As per Section 11 of the RERA Act, the developers after receiving RERA registration number of their project are expected to upload quarterly progress reports. However, the compliance level is very low in the fresh projects registered in January 2023. Out of the over 746 registrations, 584 have not given any quarterly update, and around 162 developers have given some update,” read a statement by MahaRERA.
According to MahaRERA data, over 21,500 projects are currently underway and close to 40,000 have been registered in the last six years.
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